Now that 2016 is in full swing, we want to take the opportunity to inform our employers of numerous legislative changes happening over the coming months, the first two taking effect from April 2016 might impact on your business if you are an employer of apprentices.
Chancellor George Osborne announced in his Autumn Statement back in 2014 that employers who take on apprentices will no longer have to pay national insurance which is hoped will encourage work places to hire young trainees.
This has been a long time coming, but as of the 6th April 2016, employers of apprentices under the age of 25 will no longer be required to pay secondary Class 1 (employer) NICs on earnings up to the Upper Earnings Limit, for those employees. If this applies to your business, you will need evidence of the Apprenticeship programme.
National Living Wage
Also coming into effect from April 2016, employers will have to pay at least the National Living Wage to employees over the age of 24 (not applicable for any apprentice in the first year of their apprenticeship programme). The National Minimum Wage currently stands at £6.70 an hour, but in April 2016, those over the age of 24 will get a ‘premium’ of 50p on top to bring the total to £7.20.